6:1 Demystifying the Language of Financial Aid

Speak the Language: Financial Assistance

Taken from College Greenlight

When it comes to money, you don’t need any misunderstandings. To help you navigate the waters of paying for college, here is a list of commonly used terms and what they mean.

Award Letter: Official notification of the type and amount of financial aid a college is offering you.

Demonstrated Need: The difference between what your family can contribute toward college expenses and the actual cost of attending college.

Expected Family Contribution (EFC): How much money you and your family are expected to contribute toward college expenses. EFC is based on your FAFSA application and a calculation by the federal government.

Free Application for Federal Student Aid (FAFSA): The federal application every student must submit in order to be eligible for federal financial aid. For more information and to complete the FAFSA visit fafsa.ed.gov.

Grants: Money for college that does not have to be repaid. Most grants are need-based and are awarded by the state or federal government.

Institutional Aid (or Campus-Based Aid): Financial assistance given by a college, typically either need-based or merit-based aid.

Loans: Money given to a student that must be paid back. There are several types of loans, including low to zero-interest loans given out by the federal government, like the Perkins and Stafford loans. These are the best options, since you don’t have to pay back the money until you graduate. Private loans, offered through banks and credit unions, typically have higher interest rates

Merit Aid: Financial aid awarded to you from a college based on your individual achievements and talents. For a full listing of what’s available, visit MeritAid.com.

Need-Based Aid: Financial aid given based on the ability of you and your family to pay for college.

Scholarship: Money for college that does not have to be paid back. Usually awarded based on specific criteria, such as your academic performance, extracurricular activities, college major, ethnic heritage or religious affiliation. Colleges, private groups or states may award scholarships.

Student Aid Report (SAR): After you file the Free Application for Federal Student Aid (FAFSA), you will receive a SAR stating your EFC (expected family contribution) and eligibility for financial aid. This report is also sent to the colleges you indicate on the FAFSA.

Student Loan: Financial aid that must be repaid. Student loan programs are available through the federal government and private lenders.

Work-Study: Financial aid given in exchange for work (typically at a job on campus). To qualify for the Federal Work Study (FWS) program, you must complete the FAFSA.

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College Greenlight Fit Fact: There is more than $11 billion in merit scholarships available to students. Many of these scholarships are renewable each year. Go to MeritAid.com and CollegeGreenlight.com today, and find out which scholarships fit you before you apply.

**Be sure to fill out this short quiz to earn College Knowledge points!!**

6:2 Paying for College: The Cost

College can be pricey (just check out this calculator here with any college's tuition)! Oftentimes though, the "sticker" price (the full cost of tuition and fees you see on a school's website) isn't what a student or family would pay at that school because it doesn't account for financial aid. That's why many colleges and organizations have developed "Net Price Calculators."

As College Board explains,  "Net Price Calculators" are tools that students can use to estimate their “net price” to attend a particular college or university. Net price is the difference between the “sticker” price (full cost) to attend a specific college, minus any grants and scholarships for which students may be eligible. Sticker price includes direct charges (tuition and fees, room and board) and indirect costs (books and supplies, transportation, and personal expenses).

Every school that receives money from the federal government (so basically all of them) are required to have this on their website. Be sure to use them to estimate how much you might be paying for the school's you're interested in. You could also use College Board's website to find participating schools' net price calculators.

6:3 Financial Aid Basics & FAQs

College Cost$ & Your College $earch - FAQ$
Created by F14 Intern Maggie Finn '16, with assistance from uAspire

Q: How much does college cost?

A: That depends on what type of school you are interested in attending. In-state tuition at a public school is cheaper than going to a private school. Community college is a cheaper option than public or state schools and allows you the option to transfer for a four-year school. Public universities offer in-state tuition for students who are residents of that state (for example, if you were a resident of California, you would get an “in-state tuition” price for all of the Cal State universities and UCs).

Q: How am I going to pay for college?

A: Colleges will take into account your ability to pay for school based on your financial aid application. Financial aid is a completely separate process from the college application process but just as important. Your financial aid package will be a combination of different types of money that will help you to pay for college. Your package is determined by each school you apply to, and will be different for each school. This package may include:

• Free Money - you do not have to pay it back
• Scholarships and/or grants from the school, which may be based on merit (grades) or need (ability to pay).
• Government aid - money that the government will award you based on need to help pay your school bills
• Outside scholarships - scholarships that you apply for on your own based on meeting certain criteria. There might be scholarships for a high GPA, for athletes, for students of color, for state residency, etc.
• Borrowed Money
• Loans - you borrow money from the government or from a private organization like a bank and need to pay it back (sometimes with interest, sometimes without interest) starting sometime after you graduate college and start making money. There are different types of loans with different types of interest rates, and some are better than others. For example, federal loans are better than private loans, because they have a lower interest rate, which means you’ll have less to pay back.
• Earned Money
• If your parents’ income or your income is high enough, you will be required to pay some of your college fees “out of pocket”. If this is not feasible for you or your family even though the Financial Aid Calculator thinks that you can pay, you can appeal your award or take out another loan to cover the difference.
• Federal Work Study - awarded based on need, will guarantee you a job on campus so you can work for expenses related to school, whether that is your tuition bill, meal plan, books, or personal expenses (shampoo, train ticket home, etc.).

Q: How exactly is my financial aid award determined?

A: Schools look at your FAFSA form (required) and CSS profile (not always required), which are two forms you have to fill out in order to receive financial aid. The main form, the FAFSA, accounts for various factors, including family income, household size, and whether you have other siblings in college. They will plug this into a complicated formula and output an EFC, which stands for Expected Family Contribution. This will be a dollar amount that is how much your family is expected to pay for college. It might be $0, $100, $1000, $10,000, or $65,000, or anywhere in between. This number will get sent to the schools you applied to, and the schools will determine what your financial aid package will look like.

Q: What is the FAFSA?

A: FAFSA stands for Free Application for Federal Student Aid. It is a completely separate process from the college application process but just as important. The FAFSA form becomes available January 1 of your senior year, and the earlier you fill it out, the more money there will be available. Because this is a federal process, you must be a U.S. Citizen or Permanent Resident to receive federal financial aid.

Q: How do I find scholarships? When should I start looking at scholarships?

A: There are so many resources for scholarships! The best way is to do internet searches and look at your potential colleges’ websites for scholarship opportunities. This process takes time, patience, and effort. It is never too early to start looking at scholarships. Deadlines can be early - as early as the first few months of your junior year of high school, and you don’t want to miss out on potential free money! Your SEAD intern can help with this process! Guidance counselors and college offices often post about scholarships and can help you with this process also!

**Click here: Financial Aid Quiz - The Basics to complete the quiz after this section to earn points for reading through these FAQs!**

6:5 Need Money for College? - FAFSA Overview

You probably need to fill out the federal government’s Free Application for Federal Student Aid, better known as the FAFSA. This is the first step if you want financial aid from the federal and state government or most colleges. Check out a full, comprehensive resource guide from the Center for New York City Affairs at The New School by clicking here and check this out:

Basic FAQs:

**Go to Lesson 3 on Determining your FAFSA Situation to learn more about how this applies to you!**

6:5 Determining Your FAFSA Situation

Adapted from NerdScholar

The one-size-fits-all FAFSA can be confusing for students with non-traditional families. The website below, NerdScholar, can help you answer questions like: 

• Who counts as my parent?
• Do I qualify for a dependency override?
• Should I fill out the form if I am undocumented?

Be sure to learn from NerdScholar about filling out the FAFSA with your situation. Remember, the FAFSA is one of the most important ways to get federal, state, and institutional financial aid.

6:6 Filling Out the FAFSA - Checklist

FAFSA Checklist

Adapted from I'm First Guide to College

So you've figured out that you'll need to complete the FAFSA. As you--and your parents, if applicable--complete it, be sure to have the following records available to help you answer questions on the application:

- Social Security card
- Driver's license (if any)
- Permanent Resident Receipt Card (if applicable)
- W-2 forms and other records of money earned from previous year
- Previous year's income tax return (see the instructions on the FAFSA if the tax return has not been completed)
- Records of child support paid
- Records of taxable earnings from Federal Work-Study or other need-based work programs
- Records of student grant, scholarships and fellowship aid, including AmeriCorps awards, that was included in your (or your parents') AGI
- Current stock, bond, and other investment records
- Current business and farm records
- Current bank statements

A dependent student should have all the records listed above from his or her parents except for their driver's license.

Still not sure whether you will need to put your parents' information on the FAFSA? Check out "Am I Dependent or Independent?" or call 1-800-4-FED-AID (1-800-433-3243).

If you file your taxes before filling out your FAFSA online, you might be able to have your tax information automatically retrieved from the IRS and inserted into your FAFSA. The FAFSA will walk you through the process.

Learn more at fafsa.ed.gov and studentaid.ed.gov.

6:7 How Do I Get Scholarships?

Tips for Finding Scholarships to Help Pay for Your College Education

Adapted from I'm First Guide to College, by Amy Weinstein

Did you know that scholarships can help you pay for your college education and related expenses? In fact, the more scholarship money you get, the less you will have to pay for tuition, room and board, books, and other expenses. Most importantly, unlike loans, scholarships do not need to be repaid and should be an important park of your financial aid package.

You can find scholarships that are industry specific--those that have to do with science, technology, engineering, the arts, or mathematics. Additionally, there are scholarships if you have overcome challenging life obstacles. There are a number of scholarships available for students who are gifted academically, artistically, athletically, or musically. 

Members from the National Scholarships Providers Association (NSPA) give scholarships and are committed to access, choice, and success. They offered the following tips for finding and applying for scholarships:

Start Early

Even before senior year of high school, you should be looking at scholarships applications in order to see what scholarship providers request. It is overwhelming for many students who begin looking at applications after junior year, only to realize they could have been more proactive in their level of involvement both in their school and in their community. Plus, starting early could mean finding scholarships that you could win before senior year to put towards your college tuition. It's never to early to start looking and applying for scholarships!

Look Everywhere

Remember to look for scholarships at your local community foundation! Other sources include high schools, libraries, employers, civic groups, community organizations, private foundations, and online searches. It's worth spending time to complete these applications. Two hours spent completing applications that can get you a $500 scholarship is like getting $250 per hour of effort.

Be Thorough

When searching for scholarships using an online matching service like FastWeb.com or CollegeGreenlight.com, try to complete the profile as thoroughly as possible. Students who answer all of the optional questions on average will match twice as many scholarships as students who only answer the required questions. If you have to pay money to get money, it's probably a scam. Never invest more than a postage stamp to obtain information about scholarships or to apply for scholarships.

Earn It

Scholarships are free, but they require effort on your part. Write the topically specific essays first and see if you can "recycle" some of the language for the general essays. Be thorough and polite. Once you begin applying, make sure to follow the rules of the scholarship. If you don't follow the rules, then you could be disqualified.

Final Helpful Tips

• Some schools will offer scholarship or grant money to students as well! Each school is different and some might require extra essays or an earlier deadline to be eligible for some scholarships. Be sure to look at the websites of the schools you're interested in to see if they have any scholarship opportunities.
• Remember: Some scholarships are from applying through public or private organizations directly, so be sure to check out as many organizations as possible and see how they want students to apply!
• Here are some super cool and big scholarships we've found: http://bit.ly/1I0Ikrl. There are many more out there, but these are some good ones if you don't mind putting in a lot of work for potentially a lot of reward.
• After you've filled out your College Greenlight profile, click on their scholarships tab to see what scholarships best fit you! College Greenlight shows how competitive scholarships are and how much effort they take--it's really cool!

***Complete this quiz to receive College Knowledge points and check out Lesson 8 to earn even more College Knowledge points!***

6:9 What About Loans?

Basics of Loans

Taken from I'm First Guide to College

Loans consist of money that you borrow to help pay for college, and must be repaid (plus interest). There are many different types of loans, both for students and for parents to take on behalf of their student. Read these for the basics:

Federal Student Loans

• Perkins Loans: Perkins Loans are need-based loans and are awarded by the financial aid office to students with the highest need. The interest rate is very low (5%) and you don’t make any loan payments while in school.
• Subsidized Stafford or Direct Loans: Subsidized Stafford loans are need-based loans with interest rates of 4-6%. The federal government pays the interest while you’re in school, which is why they are called “subsidized.”
• Unsubsidized Stafford or Direct Loans: Unsubsidized Stafford Loans aren’t based on financial need and can be used to help pay the family share of costs. You’re responsible for paying interest on the loan while in school. You may choose to capitalize the interest. The advantage of doing this is that no interest payments are required. The disadvantage is that the interest is added to the loan, meaning that you will repay more money to the lender.

Parent Loans

• Federal PLUS Loans: The PLUS Loan program is the largest source of parent loans. Parents can borrow up to the full cost of attendance minus any aid received, and repayment starts 60 days after money is paid to college.
• Private Parent Loans: A number of lenders and other financial institutions offer private education loans for parents. These usually carry a higher interest rate than PLUS loans.
• College-Sponsored Loans: A small number of colleges offer their own parent loans, usually at a better rate than PLUS. Check each college’s aid materials to see if such loans are available.

Other Student Loan Options

• Private Student Loans: A number of lenders and other financial institutions offer private education loans to students. These loans are not subsidized and usually carry a higher interest rate than the federal need-based loans. The College Board private loan program is an example of a need based loan for students.

**Check out "Smart Borrowing for College" if you want more advice about loans!**

6:10 Smart Borrowing for College

Taken from I'm First Guide to College, by Ann Coles

Paying for college can be very intimidating, but smart borrowing ensures your investment in your education will pay off. Here are some tips to help make going to college affordable, and check out SmartBorrowing.org if you'd like some more specific information on how this could apply to you.

1) Use scholarships, grants, savings, and work-study earnings before taking out loans

• Grants and scholarships are gift money that you never have to repay. Work-study requires you to earn the money awarded.
• Complete the FAFSA as soon as possible after January 1 and definitely before March 1 (most schools require it by February 15). Some colleges also require you to complete the CSS Profile. If your family has limited income, you may be eligible for a fee waiver.
• Search scholarships in online databases and talk to high school counselors, public librarians, community organization, and church staff, parents' employers, and college financial aid officers.
• Save as much money for college as you can from after-school and summer jobs.
• Talk to a financial aid officer at the college you want to attend if your family has special financial circumstances that make it difficult for them to help you with college costs.

2) Reduce borrowing by using other options

• Use an interest-free monthly payment plan that allows you to spread the cost of paying for college over the school year. Your college financial aid office can recommend a plan.
• Work part-time but preferably not more than 15 hours a week so that you will have enough time to do well in your studies.
• Consider going to a college that has eliminated or limited loans for most students and gives aid only in grants and scholarships.

3) Borrow wisely

• Borrow only what you need because loans need to be repaid--even if you don't finish college. Never use student loans to pay off other bills or buy things you may want but don't need.
• Carefully compare your financial aid award letters from different colleges. If you don't understand an award letter, call the financial aid office and ask someone to explain it to you.
• Borrow federal student loans first. Federal loans (Perkins and Stafford Loans for students, PLUS loans for parents) have low fixed interest rates and flexible repayment plans. Apply for a private student loan only if federal loans are not enough.
• Consider options for having your student loans forgiven, such as volunteer service in the Peace Corps, VISTA, or AmeriCorps.

4) Never use credit cards to pay for your education

• Credit cards are the most expensive source of funds. If you must borrow, exhaust all federal loan options first and then consider private education loans to pay for expenses.
• If you have an emergency, talk to a financial aid advisor to see if your college has an emergency loan fund or can help you in some other way.

7:4 Undocumented Students

Undocumented Students Can Go to College!

By Jose Arreola, from I'm First Guide to College

Undocumented Students Can Go to College
Designed by Fred Hidalgo

Here is some advice and guidance in your pursuit of college and citizenship. Be sure to also check out College Greenlight's resources for undocumented students.

Applying to College:

• All students, regardless of immigration status, can apply to college. Your college applications will be processed even if you don't provide your social security number, citizenship, and residency status. The confidentiality of your educational records--application and financial aid forms--is guaranteed by the Family Educational Rights and Privacy Act (FERPA), which covers both high schools and colleges. This means that your college and/or high school can't tell others about your documentation status in order to get you in trouble.
• Are you or your parents undocumented? Find information about the FAFSA by clicking on the following: I am undocumented or my parents are undocumented.

Scholarships and Financial Aid:

• We have seen a tremendous amount of movement over the past couple of years with regard to financial aid made available to undocumented students. We now have 18 states that recognize in-state tuition for undocumented students and a few other states that are working on legislation for in-state tuition. We also have 5 states which offer state financial aid: California, Illinois, Texas, New Mexico, and Minnesota.

Other Ways to Make College Affordable:

• While immigration status may mean you are not eligible for federal financial aid, there are plenty of private scholarships which you can apply for. Start your research early and keep it ongoing. Check out 10,000 Degrees and Golden Door for opportunities that you might want to apply for.
• Even if you aren't eligible to fill out the FAFSA, you can fill out the CSS Profile for participating schools to receive aid from individual institutions.
• Research private colleges and universities and local community colleges. Private institutions often have more aid to give non-citizens because their budgets are not mandated by the government. Community colleges can be a more affordable way to get your education started.
• If you are eligible to work, find a part-time job while in high school to save money. When you apply or college, ask about your eligibility for work-study programs.

Deferred Action for Childhood Arrivals (DACA):

• This program provides eligible undocumented young people who entered into the U.S. before age 16 with a two-year work authorization and protection from deportation. There are hundreds of thousands of undocumented young people who are currently eligible, but have not yet applied. With DACA approval, you are able to receive a social security number and a driver's license.

Connect to Legal Services:

• Due to the cost of accessing an immigration lawyer and the distrust that exists within many communities due to experiences with fraudulent individuals and "notarios," many do not have a sense of their own immigration cases or about legal remedies that do exist currently. Check out Educators for Fair Consideration to find credible information. 

**Be sure to complete this quiz to earn College Knowledge points!**

7:7 In-State Schools: New York

Zoom in on the chart below to check out some public and private schools in New York state. There's so much good information on here!

Created by Redal Ram '17 and Sarah Waltcher '16 (SEAD Interns W15)

7:8 In-State Schools: Massachusetts

Zoom in on the chart below to check out some public and private schools in Massachusetts. There's so much good information on here!

Created by Mrynna Cervantes '16 (SEAD Intern W15)

7:9 In-State Schools: New Hampshire

Zoom in on the chart below to check out some public and private schools in New Hampshire. There's so much good information on here!

Created by Roberto Lopez '17 (SEAD Intern W15)